Sony, Viacom in Online Pay TV Deal

Sony has reached a preliminary agreement with Viacom to carry the company’s cable channels on its planned Internet-based TV service, a person familiar with the matter said.

Sony plans to stream traditional cable channels, as well as on-demand content, posing new competition for cable, satellite and phone companies that have long sold subscription TV services.

The deal marks a significant boost for Sony as it races against against companies like Intel and Google that are also on the hunt for programming rights. A Sony deal with Viacom, owner of MTV, Nickelodeon and Comedy Central, would be the first major content deal for one of the new entrants to become public.